Good Corporation, Bad Corporation Corporate Social Marketing Ethics Selling Controversial Products

Chapter Marketing Ethics Selling Controversial Products Figure . Advertisers are continually exploring new media for advertising as seek to break tbe promotional clutter of modern to attract tbe attention of consumers . Here , tbe beer logo is imprinted on tbe top of a bouse adjacent to tbe Wrigley Field baseball park in , Illinois . Legal and Ethical Constraints on Marketing and Advertising This chapter explores the ethics of marketing and advertising . As the most visible form of marketing , advertising is one of the principal motors of a capitalist economy and also one of the largest modern industries The global advertising market was valued at 495 billion in 2013 ( the United States was the largest national market at 152 billion ) Marketing Ethics Selling Controversial Products 84

Good Corporation , Bad Corporation not only inform consumers of available products , services , promotions , and sales , they serve a vital business function by allowing brands to distinguish themselves from competitors , which rewards for improving the quality of their offerings . Advertising is a key ally for innovation , because advertising allows firms to create awareness and desire among consumers to buy new products . Despite these , the advertising industry has long been suspected of using devious tactics . As a result , many consumers are highly skeptical and even disdainful of advertising in general . Advertisers sometimes take the risk of shocking the public with their ads because they are seeking to break through the communications clutter of modern , the average American is exposed to a great number of advertising messages every day , with estimates running from several hundred to several thousand ads per In order to attract the public attention , advertisers may resort to appeals and tactics of questionable taste . Little wonder that more than half of Americans believe that advertising today is out of control . Social critics point to advertising as one of the most objectionable aspects of our consumer economy . From the billboards that blot out the countryside along highways , to the television shows that are interrupted every few minutes by outlandish commercials , to the mailboxes and accounts that become cluttered with direct marketing , advertising methods are often criticized for being intrusive , offensive , silly , and even dishonest . As a result of the perceived abuses of advertising , national governments all over the world have imposed laws and regulations on the advertising industry . Every country or region has its own area of sensitivity . In many Muslim nations , for example , there are against advertisements that display nudity or offend traditional notions of decency . France and Germany prohibit comparative advertisements in which one brand claims to be superior to another . The modern marketplace abounds with products that pose challenges for regulators . Consider the example of tobacco and alcohol . These products can be harmful or dangerous , but many people nonetheless desire to consume them . Most Western countries have decided that it is counterproductive to outlaw the sale of tobacco and alcohol , as doing so may create a black market and stimulate organized response of most governments has been to allow the sale of such products but to prohibit or strictly constrain their advertising . Other product categories that tend to be governed by specific advertising regulations include pharmaceuticals and financial products . Many products have positive uses but can also be dangerous if misused , like , knives , razors , lighter , pesticides , toys , athletic equipment , and so on . In such cases , the law usually prohibits advertising that encourages the consumer to use the product in a dangerous fashion . Another common type of marketing regulation is one that prohibits advertisements from making false , deceptive , or misleading claims . In most countries , such rules are enforced by the ministry for consumer affairs . In the United States , rules against deceptive advertisements are promulgated and enforced by the Federal Trade Commission ( There are certain product categories in which exaggerated claims are commonly made . For example , in the case of skin creams , cosmetics , perfumes , deodorants , toothpaste , mouthwash , and so on , advertisers typically claim ( or suggest indirectly ) that their products make the consumer more physically attractive , especially to the opposite sex . The problem is that some consumers may not be sophisticated enough to discern the difference tween innocent puffery and claims of effectiveness . Thus , teenage boys have been known to douse themselves with Axe deodorant products in the hope that they will Marketing Ethics Selling Controversial Products 85

Goad , Bad attract females as effectively as is suggested in Axe notoriously provocative advertising . Many advertisements for such products come so close to making deceptive appeals that they may trigger the attention . As a result , advertisers have learned to be cautious in the precise wording of their claims . For example , advertisements for skin cream may permissibly suggest that the user skin will look and feel better after use of the product , but they can not include text guaranteeing the disappearance of wrinkles . In many countries , regulators are especially vigilant when it comes to advertising aimed at children , because it is felt that children are sometimes more susceptible to manipulation or suggestion and are less likely to understand the dangers associated with the use of an advertised product . In Greece , for example , toy advertisements are prohibited between the hours of and 10 . In Sweden and Norway , all advertising aimed at children is prohibited , and in France , a child may not appear as the spokesperson in a commercial . In Holland , advertisements for sweets must include a toothbrush at the bottom of the ad to remind children to brush their teeth after eating sweets . In this chapter , we will begin with a review of the advertising industry of objectionable or unethical advertising . Many advertisements and marketing tactics fall into a regulatory gray area , where the advertisement is technically legal but still manages to offend some of the population . A frequent cause of such offense is the advertisers quest to develop a humorous or surprising advertisement . For example , one Danish advertisement featured an image of the Pope wearing a particular brand of sneakers , which offended many Catholics . In Italy , the fashion company shocked the nation by using an advertisement in which a priest is seen kissing a nun . In cases like these , it is not possible to make the advertisements illegal , but advertising industry associations feel it is necessary nonetheless to police the market for objectionable advertisements . Our case study will deal with the ethical dilemma faced by executives at an advertising consultancy that is considering accepting an account for a global brand that manufactures products . The CEO of our company will call upon us to consider and debate the pros and cons of developing a US advertising campaign for Fair and Lovely , an Indian brand . In the United States , this product is demanded primarily by immigrants from South Asian countries , a large and growing demographic . Many people feel that advertisements for such products contain racist appeals , since they are implicitly based on promoting the superiority of white skin . Is it ethical to market and promote such a product ?

Why or why not ?

Let us first consider some background to allow us to answer these questions . Principles of Marketing Ethics As stated earlier , every country has a basic framework of advertising law . Many types of advertisement are simply prohibited by law . However , with respect to advertisements that are legal but morally questionable ( or otherwise objectionable ) the advertising sector itself by applying codes of marketing and advertising means that the advertising industry sets up its own committees to police questionable . Virtually every country has at least one advertising industry trade association with a panel or committee that reviews consumer complaints . After examining the advertisement in question , the panel decides whether or not to ask the advertiser to remove Marketing Ethics Selling Controversial Products 86

Goad , Bad the advertisement although advertisers are not legally obliged to follow the decisions of such committees , they usually do . The panels base their decisions on ethical principles contained in codes of advertising ethics . The most codes are those established by the International Chamber of Commerce ( Codes are followed by advertising bodies in over 30 countries . The Codes are based on the core principles of legality , decency , honesty , and truthfulness in all marketing communications . The further emphasizes that all marketing communications should be prepared with a due sense of social and professional responsibility and should conform to the principles of fair competition , as generally in business . No communication should be such as to impair public confidence in codes are deliberately framed in general terms , because it can be very to objectively define what kind of advertisement can be considered It is assumed that standards of decency vary on a national or cultural basis , and in addition are likely to change over time . Thus , the Code thus provides general guidelines communications should not contain statements or audio or visual treatments which offend standards of decency currently prevailing in the country and culture The Code further stipulates the ' Marketing communications should be so framed as not to abuse the trust of or exploit their lack of experience or knowledge . Relevant factors likely to affect consumers decisions should be communicated in such a way and at such a time that consumers can take them into ' Marketing communications should respect human dignity and should not incite or condone any form of discrimination , including that based upon race , national origin , religion , gender , age , disability , or sexual ' Marketing communications should not without justifiable reason play on fear or exploit misfortune or ' Marketing communications should not appear to condone or incite violent , lawful , or antisocial ' Marketing communications should not play on superstition . Examples of Objectionable Advertising Discriminatory Advertisements As we review the history of advertising , we will observe that certain ads and campaigns were previously considered acceptable , and even popular , but today would generally be as objectionable ( in clear violation of one or more of the principles outlined above ) Such cases can help illustrate the ongoing evolution of community standards in marketing ethics . Marketing Ethics Selling Controversial Products 87

Good Corporation , Bad Corporation Kim ) and , 26 Vintage , June 14 , 2011 . Figure ix a vintage beer advertisement from 1951 . Consider the vintage ad for beer in Figure . A husband is his , who has just burned the evenings dinner . The advertising copy reads as follows Don worry , darling , you didnt burn the This advertisement appears to be aimed at men and contains a mocking and patronizing reference to young housewives of the day . In its time , such an advertisement was probably considered by many to sent humor , but today it would be considered offensive by many unstated implication is that men are while women are weepy and emotional homemakers . By contemporary standards , the ad is overtly sexist . While it might seem that such advertisements are relics of the past , controversial criminatory appeals and references continue to appear in the media . As a further example , consider the advertisement for the Mountain Dew in Figure Source , Mountain Dew Mort Commercial in ' 2013 ) Figure Mountain Dew zany but i a Mountain goat Mountain Dew had run a successful series of edgy commercials targeted at Internet viewers and users of social media ( an increasingly popular tactic ) Perhaps by Marketing Ethics Selling Controversial Products 88

Good Corporation , Bad Corporation the remarkable success of insurance company advertising mascot ( a green gecko with a cockney accent ) Mountain Dew had created a series of ads featuring a goat with a crazed passion for the green soda . For one of these commercials , Mountain Dew hired artist Tyler the Creator to create and produce the advertisement . In the ad in question , the goat is driving a car and is pulled over and arrested by a policeman . In , we see the goat attacking a woman to wrench away her bottle of Mountain Dew , leaving the woman bloodied and wounded . In the next scene , the woman tries to identify her assailant from a police that features the goat and four black men . Drinking steadily from a bottle of Mountain Dew , the policeman prods the woman to make a choice . The goat responds to the situation by speaking in a parodic style , employing slang phrases such as do her up and ya better not snitch on a Meanwhile , the amped policeman urges the woman to nail this little sucker and suggests it is the one with the In retrospect , one wonders how such an offensive advertisement could have been leased by a subsidiary of one of the worlds largest marketing organizations ( Mountain Dew is a subsidiary ) There was a great deal of outrage voiced when the ad was posted on Mountain Dew website . One college professor labeled the as arguably the most racist commercial in The ad was promptly pulled and accepted full responsibility and apologized . To no avail , had pointed out that Tyler was and that the four black men featured in the lineup were actually his close friends . Apparently , the irony intended by Tyler was meant to mock racism and discriminatory police practices . However , as many other advertisers had learned before , humor is a sword in advertising . It can attract attention , but it can also be misunderstood and cause offense . Encouraging Harmful or Dangerous Practices The advertisement in Figure illustrates two categories of advertising that merit special scrutiny advertisements featuring children and advertisements encouraging misuse of a product . Would any parent think it appropriate to have his or her infant shave himself with a razor ?

Of course not , but clearly that was not the intent of the advertiser . Marketing Ethics Selling Controversial Products 89 Good Corporation , Bad Corporation ( i Safety NEI ! ammo GOODS PAUL . 20 Featuring ) Oil . 26 , 201 . Figure ii a vintage advertisement from 905 . The ad is attempting to be humorous by employing an absurd image , a baby shaving itself . The ad is also trying to make the point that the new safety razor is so safe that even a baby could use it without harm . There also may have been an intention to create an association between the smoothness of a baby skin and the closeness of the shave provided by the razor . By today standards , however , the advertisement appears reckless . While it is not possible that a baby would be by an advertisement , it is not inconceivable that a small child of or six years of age might be encouraged by this advertisement to play with a razor The baby seems to be having such fun , and the small child might have seen his or her father shaving . Regardless of the likelihood that the advertisement could cause harm , today advertisers have become increasingly wary of using advertising that features children engaged in dangerous activities . Potentially Dangerous Products Advertising Bans and Restrictions As stated above , there are products that are sold legally but that are considered to have such a high potential for harm or abuse such that their advertising has been banned or regulated . Let us consider just two such product areas cigarettes and alcoholic beverages . Marketing Ethics Selling Controversial Products 90

Good Corporation , Bad Corporation Cigarettes ur . the ' in Source Cory , Particularly , Now . 25 , 2011 . Figure 77 . if it a 962 advertisement for tbe cigarette in tbe edition of Popular Science magazine . Concerned with medical research that revealed the health hazards of smoking , the US and European governments began to regulate tobacco advertising in the . The print ad in Figure , from 1962 , features an idyllic family scene that suggests that a smoker gets lots more from a particular brand . The ad suggests that one acceptable way to enjoy the smoking experience is to smoke in the company of one spouse and children . In 1964 , however , the US Surgeon General issued a formal report that concluded that smoking caused lung cancer and chronic bronchitis . This led to the government instituting a series of regulations aimed at the tobacco industry . The new laws required health warning labels on all cigarette packages and required that all cigarette companies annual reports to the . One goal of these regulations was to oblige the large tobacco companies to disclose their advertising expenditures and strategies , so that the government would be able to assess the link between tobacco advertising and health risks . Throughout the late , the US government accumulated and analyzed data on the marketing and advertising practices of the large cigarette companies and concluded that tobacco advertising encouraged smoking . As a result , the Public Health Cigarette Smoking Act was passed and signed into law in act banned all cigarette on television and radio advertising in the United States . At the time the prohibition went into effect , tobacco companies were spending eighty percent of their advertising gets on television advertising , so the impact of the law was significant . Marketing Ethics Selling Controversial Products 91

Good Corporation , Bad Corporation Subsequently , the United States enacted further restrictions on cigarette advertising . In 1999 , billboard advertising of tobacco products was banned . In 2010 , tobacco companies were prohibited from sponsoring athletic , musical , or artistic events , and from featuring their logos on apparel . However , the government has stopped short of banning print . These governmental efforts have been matched by a certain level of on the part of tobacco companies . For example , after a public outcry over its use of a cartoonish camel to sell cigarettes ( it was feared that such advertising would be appealing to children and teenagers ) Camel Cigarettes voluntarily stopped advertising in magazines in 2007 . However , in 2013 Camel resumed its practice of advertising in magazines . Alcohol Alcohol has been classified by the International Agency on Research for Cancer ( as a Group carcinogen , meaning that the circumstances in which humans are exposed to alcohol are to create a risk of cancer . According to the World Health Organization ( WHO ) alcohol causes approximately million deaths per year . In the United States alone , approximately deaths per year are the result of automobile caused by drunk driving . Despite these sobering statistics , the US government has taken a very different approach to alcohol advertising as compared with tobacco advertising . In essence , the has primarily asked the alcohol industry to . Given that advertising is known to be an effective means of increasing sales and market share , why would alcoholic beverage companies agree to abide by ?

Here , the example of advertising bans on tobacco products is instructive . Other industries whose products are seen as controversial have been by the threat of an advertising ban similar to that placed on tobacco products . Consequently , trade associations for such tries have sought to maintain an open dialogue with legislators in the hope of appeasing them with effective , so as not to be faced with a total ban . In the United States , the focus has been to minimize the exposure of underage drinkers to the advertising of alcoholic beverages . Currently , the alcoholic beverage industry has agreed to restrict advertising in print , and radio to those venues where studies show that more than 70 of viewers will be of drinking age ( older than 21 ) Further , the industry has agreed to support a public campaign against underage drinking and to include warnings about drinking responsibly in all advertising . The has urged industry to apply the 70 rule to sponsorship of musical and sporting events as well but no agreement has been reached . Even with these measures in place , there remains a good deal of concern among watchdog groups about the appeal of advertising to young people , who are considered more likely to abuse alcohol than older viewers . Moreover , the alcohol industry continues to employ advertising appeals based on the implicit sexual allure of drinking in bars or at parties . This approach is disturbing to industry critics who see the and sexualizing of alcohol consumption as another way of attracting young people to alcohol products . As with cigarettes , the implicit threat is that if the industry can get young people hooked early in life , then they will become lifelong consumers of a product with known health risks . Youths who begin drinking at age 15 are four times more likely to become alcoholics than those who begin drinking at age Marketing Ethics Selling Controversial Products 92

Good Corporation , Baal Corporation Case Study The Marketing of Whitening Creams particular , white hours in tanning salons going to great efforts ( and sometimes even incurring great pain and health risks ) to make their skin darker . In other parts of the world , such as the Caribbean , Africa , East Asia , and the Indian , people go to much expense to lighten their skin . They do so through the purchase and application of or creams that purport to make dark skin lighter . Whether or not they actually work is controversial . In many of these regions , lighter skin is more highly regarded socially . Arguably , this phenomenon is a sad of colonialism , in that it is based on a positive association with the skin color of Caucasians . The is that , in the United States and Europe , darker skin is often considered attractive and exotic . Fair and Lovely is an Indian brand of products manufactured and by Lever ( Fair and Lovely is the brand in India , followed closely by which is made by . advertising touts Fair and Lovely as a miracle worker and claims that it is proven to deliver one to three shades of As a result of competition from , stepped up its marketing efforts in recent years , which led to a great deal of controversy . One of the controversial ad campaigns was based on the theme The fairer girl gets the In one of the typical television commercials used in this campaign , a poor father is lamenting the fact that he does not have a son who can work and help support the family . His daughter , who has dark skin , looks on and clearly feels a sense of guilt . When she seeks employment , she is rebuffed because of her dark skin . Her unhappy lot is magically transformed with the use of Fair and Lovely cream . Suddenly , she not only appears to have much lighter skin , but the other characters in the commercial perceive her as much more beautiful . She dons a miniskirt and employment as a attendant , receiving the romantic attention of a Westerner . Among the many improbable benefits associated with use of Fair and Lovely , it seems , are a wardrobe change , secure employment , and a foreign boyfriend . The newly young woman is now a success and can take her proud father out for a lavish dinner . The popularity of Fair and Lovely , as well as other creams , is tied to Indian cultural traditions . Lighter skin has been associated with a higher caste and fore greater social status . Most of the famous female stars in India popular Bollywood movie industry are . Do the Fair and Lovely those of make someone skin lighter ?

Or is this idea just an illusion perpetuated by effective advertising ?

In its documentation regarding Fair and Lovely , only states that the cream contains vitamins essential to skin care and UV blocking agents ( as in ) In other words , rather than actually turning the skin lighter , Fair and Lovely may only work by keeping skin from getting darker , something likely to happen in drenched areas of India . Critics claim that at best such products temporarily bleach skin lighter . Not everyone in India is comfortable with the promotion of creams . A number of groups have come out against and Fair and Lovely , charging the company with deceptive advertising and the promotion of discrimination and sexism . Many critics point out that the celebration of lighter skin is implicitly a rejection of darker , the Marketing Ethics Selling Controversial Products 93

Goad , Bad Women of Worth Foundation launched a campaign called Dark is Beautiful to protest products . Indian fashion writer observed the following I ve heard the stray dig for a Punjabi , you re quite dark or jokingly mentioned , are you sure you haven been adopted from ?

or even the infamous , wow , you are , like , so exotic standard fare for me as the darker blip in family photos . Having your identity reduced to skin tone can be crushing , particularly when it doesn fit with the more fair ideal admired by most cultures . In India , ads by and Fair and Lovely often seemed laughable and pompous to me , with grandfathers sanctioning the use of skin lightening creams to ensure the success and subsequent beauty of their dusky points out that to be identified or even judged according to one skin color is demeaning and diminishes a woman and creates a sense of insecurity . Topic for Debate Should an American Advertising Agency Represent Fair and Lovely ?

In this fictional case , a small but highly successful new advertising agency based in New York City , has become known for its ability to craft effective social media campaigns targeting the millennial generation ( young people born between the early and early ) has become successful especially with rapidly growing , fashion , and communications groups . This small agency is known for its creativity . The CEO of , Ralph Rodriguez , has been approached by , one of the worlds largest consumer goods conglomerates , with a US advertising budget in the tens of millions , to craft a strategy for marketing Fair and Lovely products to South Asian and East Asian immigrants and their children . is aware of the controversies surrounding Fair and Lovely products , but is also aware that there is a significant US market for products . As a result , would like to tap into knack for thinking up unusual , marketing strategies . In its initial discussions , has talked about starting with an annual million budget , which might be doubled or tripled in subsequent would instantly make the largest client at , which is still a very small boutique agency with only 18 employees . However , when Rodriguez discusses the opportunity with his Creative Director , Elaine Williams , she Thats a racist product , Ralph . We can go there , no matter how much money it makes Ralph , who has just invested in renovating a loft into beautiful new for ( complete with computer and graphics ment ) is not so sure . He counters , What about ?

What about Hawaiian Tropic ?

Those products make people skin darker , supposedly , but nobody complains . What about Afro Sheen and other for the black community ?

Nobody says those are racist . This is a Marketing Ethics Selling Controversial Products 94 Goad , Bad 500 million market in India alone , not to mention a standard product category in Japan , China , Indonesia , and re talking about a market with well over two and a half people ! Ralph can see that Elaine is not convinced , so he schedules aboard meeting where his top executives wil argue the case , pro and con , for accepting the account . You will be signed to one of those teams . Should agree to craft advertising campaigns for the Fair and Lovely product line ?

Affirmative should agree to represent Fair and Lovely in the United States . Possible Arguments ' We have a responsibility to customers to provide them with the products they desire we should not demean our customers by treating them like ' Fair and Lovely is not dangerous and may provide psychological to , like other cosmetics ' Fair and Lovely skin enrichment , sun blocking , and moisturizing features are . Negative should refuse to represent Fair and Lovely . Possible Arguments ' Fair and Lovely is an ineffective product and its related advertising claims are therefore ' Fair and Lovely promotes and sustains social , racial , and ethnic stereotypes and ' Marketing Fair and Lovely would be socially irresponsible . Re a I Ad Campaign Spurs Debate Among Thais , Ad Campaign Spurs Debate Among Wall Street journal . October 25 , 142405 27023047994045 7915 7422770231930 . Skin Whitener Advertisements Labeled Racist , Sara . Skin Whitener Advertisements Labeled . September , Marketing Ethics Selling Controversial Products 95

Goad Corporation , Bad Corporation The Dark Side of Cream , Sunny . The Dark Side of Cream The Dangerous Fashion for across Asia Perpetuates Racism and Should be as Guardian . April print . Synthesis Questions . Is there anything wrong in marketing cosmetics products with the suggestion that they make the buyer more beautiful , even if this is unrealistic in many cases ?

Should products be legal ?

Why or why not ?

Does modern society have too much advertising ?

How could we control it ?

Can you suggest any mechanisms or regulations that should be implemented ?

Magna Global 2013 Advertising Market Forecast , Magna Global , accessed October 23 , 2012 , For example , the article Anywhere the Eye Can See , It Likely to See an Ad , New York Times , 15 , 2007 ) quotes ranging from to per day . Advertising industry sources argue that the number is much smaller , commonly around 300 per day . Code of Consolidated Advertising and Marketing Practice , International Chamber of Commerce ( 2011 ) accessed December , 2014 , commercial can be viewed on YouTube via the following link watch ?

embedded . Alcohol Advertising and Youth ( Position Paper ) American Academy of Family , accessed October 25 , 2013 , Dark Beautiful ?

The Fairness Debate Opens Wide in India , Post , August 26 , 2013 , fai . Marketing Ethics Selling Controversial Products 96